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 Gov. Pat Quinn and other supporters on Monday stressed the
importance of the vote, saying approving the legislation is a
crucial step toward improving Illinois' disastrous financial
situation. Quinn, a Chicago Democrat, planned to travel to the state
Capitol in Springfield and said he would meet with as many
legislators as possible to try to get them to vote yes.
"I think (this is) the most important fiscal vote that will ever be
taken by the General Assembly in my lifetime," he said Monday at an
unrelated event. "We need to erase the liability and move Illinois
forward. That's what I'm committed to and I think everyone who is
interested in the future of Illinois, the common good, what's good
for taxpayers should join us in urging a yes vote."
Illinois has the worst-funded pension systems of any state in the
nation, primarily because lawmakers failed for decades to make the
state's full payments to the funds.
Even as other states with similar pension messes took action in
recent years, the Democrat-controlled Illinois General Assembly was
unable to come up with its own solution. Meanwhile, the major credit
rating agencies downgraded Illinois to the lowest credit rating of
any state in the country, and annual pension payments grew to about
one-fifth of the state's general funds budget, taking money away
from schools, roads and other areas.
The proposal to be considered Tuesday is estimated to save the state
$160 billion over 30 years and fully fund the systems by 2044.
It would push back the retirement age for workers ages 45 and
younger, on a sliding scale. The annual 3 percent cost-of-living
increases for retirees would be replaced with a system that only
provides the increases on a portion of benefits, based on how many
years a beneficiary was in his or her job. Some workers would have
the option of freezing their pension and starting a 401(k)-style
defined contribution plan.
Also included in the plan is language to prevent "pension abuses,"
as nongovernment employees such as union bosses couldn't participate
and new hires wouldn't be able to bank sick or vacation time to
boost pensions.
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A clear majority of a bipartisan pension conference committee signed
off on the deal late Monday, sending it to the floors of both the
House and Senate. But passage there was not seen as being assured.
Labor unions planned to turn out in force for a hearing Tuesday
morning, where the committee was scheduled to discuss the
legislation and hear from its supporters and opponents.
The unions say the measure is unfair to workers and retirees who for
years made their required payments to the retirement funds, while
the state did not. They also say portions of the plan violate a
provision of the Illinois Constitution that says pension benefits
may not be diminished. They plan to file a lawsuit arguing the
measure is unconstitutional, if it is approved.
Others have said the plan doesn't cut benefits enough, while some
critics say legislators and the public haven't had sufficient time
to review and analyze the legislation.
Tuesday's vote is scheduled to occur one day after the deadline for
candidates to file with the state board of elections to run in the
2014 primary — timing that could give some lawmakers concerned about
a primary challenge the freedom to vote in favor of the bill.
It's also a big vote politically for Quinn, who has made fixing the
pension problem his top priority and is seeking another term next
year. Just one of his three potential Republican challengers, Sen.
Bill Brady, has said he supports the bill.
[Associated
Press; KERRY LESTER and
SARA BURNETT]
Copyright 2013 The Associated
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